EMERGENCY CREDIT LINE SCHEME (ECLGS) EXTENDED TILL 31.03.2022

EMERGENCY CREDIT LINE SCHEME (ECLGS) EXTENDED TILL 31.03.2022

Context:

Since its launch, Emergency Credit Line Guarantee Scheme (ECLGS), has extended relief to more than 1.15 crore Micro, Small and Medium Enterprises (MSMEs) and businesses. To support a number of businesses impacted by the 2nd wave of COVID 19 pandemic, it has been decided to extend the timeline of the Emergency Credit Line Guarantee Scheme (ECLGS) till 31.03.2022 or till guarantees for an amount of Rs 4.5 lakh crore are issued under the scheme, whichever is earlier.

• The last date of disbursement under the scheme has also been extended to 30.06. 2022.

The following modifications have been made in the scheme to give support to businesses impacted by the 2nd wave of COVID.

• Existing borrowers under ECLGS 1.0 & 2.0 would be eligible for additional credit support of up to 10% of total credit outstanding as of 29.02.2020 or 31.03.2021, whichever is higher.
• Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0),  can avail of credit support of up to 30% of their credit outstanding as of 31.03.2021.
• Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support up to 40% of their credit outstanding as of 31.03.2021, to the maximum of Rs.200 crore per borrower.